North Carolina Down Payment Assistance Programs

Payments Gateway - The North Carolina Housing Finance Agency got two amazing programs for First Time Home Buyers. These programs would be the Mortgage Credit Certificate along with the Down Payment Assistance System.

You also purchase a house between December 1, 2009 and January 1, 2009 and should you qualify for one of the programs, you might also qualify for the $8,000 tax credit merely enacted into law in the Federal Economic Stimulus Plan.

First, who is a First Time Home Buyer? There is a first-time Home Buyer someone who hasn't owned a home in the previous three years. That is precisely the same qualifying definition.

What is a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a national tax credit to assist home buyers with low and moderate incomes.

Should you are eligible for the MCC, you are able to claim 20% of the interest you pay as a credit on your federal income taxes on your own mortgage. You are able to save as much as .

You'll have the ability to combine this with the $8,000 tax credit if you do qualify for 2009, for the MCC. This would reduce a buyer's tax liability by $10,000.

Who qualifies for an MCC is based on your own income and the purchase price of the house you're buying. Household income means the “gross income of the mortgagor and any person expected to reside in the residence who is 18 years of age or older.”

The income and house price limitations Durham and Chatham Counties are given below.

MCC Income Limitations 1 Person $61,500 2 Individuals $61,500 3 Individuals $70,500 4 Individuals $70,500

MCC Sales Cost Limits New House $220,000 Existing House $210,000

Home buyers that want help with their deposit and closing prices may be able to get down payment assistance - or, put simply, interest-free, deferred second mortgages up to $8,000. The purchaser only needs to pay and the load would pay up to .

This program has stricter income limitations than the MCC plan outlined above. Like the MCC application, it might be used in conjunction with all the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment assistance, nonetheless, cannot be used in conjunction together with the MCC. This is an either or scenario.

The income and house price limits that apply in Durham Orange and Chatham Counties are given below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Individuals $45,650 3 Persons $51,350 4 Men $57,050

Down Payment Support Sales Price Limits New House $210,000 Existing Residence $210,000